Sales Tax Instructions

Sales Tax Instructions, 2009
through SRO 490(1)/2003 dated 07-
06-2003 is applicable on the material
imported or purchased under DTRE
scheme prior to the said date.
13. Whether a direct exporter can take
DTRE approvals simultaneously or
otherwise on the basis of export
contracts in terms of sub-rule (1) of
rule 297 as well as on the basis of past
export performance in terms of subrule
(4) of the said rule.
14. Whether lubricants, consumable
stores and spares are covered in the
definition of input goods under DTRE
rules.
15. Where zero-rating is admissible on
services like courier, clearing agency
charges etc. under DTRE scheme.
16. Under Rule 297, Appendix-I and
IA are filed for exemption of duty &
taxes and duty draw back respectively.
But the applicant has been prohibited
to include the goods in Appendix-I
and IA. In the case of polyester staple
fiber, facility of duty drawback has
also been extended and sales tax is
also allowed to be exempt. In such
case, the applicant will have to show
the item on both the Appendix (I &
IA). This problem needs advice from
CBR.
17. Guidance is solicited that whether
the surcharge @ 1% or 2% is to be
ascertained by this Collectorate or by
the DSAO/Sales Tax Department.
final decision as special case.
This issue has already been clarified
in CBR‘s letter C. No. 4(8)DTRE/
2003(Pt) dated 11-10-2003. It is
however, further clarified that
performance based DTRE approval
and contract based DTRE approval
can be given even with regard to
exportable of the same description.
These items are not covered in the
definition of input goods for the
purpose of DTRE scheme.
Rule 297(8) and Rule 297 B cover
only goods and not services.
Under DTRE scheme, duty drawback
on locally procured imported goods
(not exceeding 10% of the total value
of the approved input goods) and duty
drawback on locally manufactured
PSF on ‗deemed import‘ basis without
ceiling are two different components
of duty drawback under DTRE regime
and are to be dealt with accordingly.
The PSF on which duty drawback on
deemed import basis and meanwhile
exemption of sales tax is to be claimed
need not to be included in Appendix-I
because quantity of such PSF is
mentioned in Appendix 1(A) and the
DTRE approved person can avail sales
tax exemption on such quantity under
sub-rule (8) of rule 297. The
Collectors should, however, cover
such amount of sales tax under the
relevant security instrument at the
time of granting DTRE approval.
If not already paid, the surcharge due
under rule 298 is to be ascertained and
realized by the Collectorate at the time
of discharging security instrument
under the DTRE scheme.